A comparison after Union Budget 2025

Under the proposed Union Budget 2025, a ₹60,000 rebate applies to incomes up to ₹12 lakh, enhancing the attractiveness of the new tax regime.

The income tax slabs proposed in the Union Budget 2025 under the new tax regime include a ₹60,000 rebate for income up to ₹12 lakh ( ₹12.75 lakh for salaried individuals) under Section 87A.

This makes the old tax regime, which has 5 per cent, 20 per cent,

and 30 per cent slabs and allows deductions for tax-saving investments, less attractive in comparison.